diff --git a/lib/utils.js b/lib/utils.js
index 823dfdfce..e513bf93d 100644
--- a/lib/utils.js
+++ b/lib/utils.js
@@ -18,7 +18,7 @@ const getAST = (asyncapiYAMLorJSON, initialFormat) => {
 
 const findNode = (obj, location) => {
   for (const key of location) {
-    obj = obj[utils.untilde(key)];
+    obj = obj ? obj[utils.untilde(key)] : null;
   }
   return obj;
 };
diff --git a/test/parse_test.js b/test/parse_test.js
index 8ca0ae09a..75eb690cd 100644
--- a/test/parse_test.js
+++ b/test/parse_test.js
@@ -410,6 +410,19 @@ describe('parse()', function() {
     }, expectedErrorObject);
   });
 
+  it('should throw proper error even if issue is inside $refed file of a $refed file', async function() {
+    const expectedErrorObject = {
+      type: 'https://github.com/asyncapi/parser-js/schema-validation-errors',
+      title: 'This is not a valid AsyncAPI Schema Object.'
+    };
+
+    await checkErrorWrapper(async () => {
+      await parser.parse(fs.readFileSync(path.resolve(__dirname, './wrong/good-ref-to-broken-file.yaml'), 'utf8'), {
+        path: __filename,
+      });
+    }, expectedErrorObject);
+  });
+
   it('should throw error if document is invalid YAML', async function() {
     const expectedErrorObject = {
       type: 'https://github.com/asyncapi/parser-js/invalid-yaml',
diff --git a/test/wrong/good-ref-to-broken-file.yaml b/test/wrong/good-ref-to-broken-file.yaml
new file mode 100644
index 000000000..1fa768daa
--- /dev/null
+++ b/test/wrong/good-ref-to-broken-file.yaml
@@ -0,0 +1,9 @@
+asyncapi: 2.0.0
+info:
+  title: My API
+  version: '1.0.0'
+channels:
+  mychannel:
+    publish:
+      message:
+        $ref: 'wrong/good-refed-file.yml'
\ No newline at end of file
diff --git a/test/wrong/good-refed-file.yml b/test/wrong/good-refed-file.yml
new file mode 100644
index 000000000..d156ee3a9
--- /dev/null
+++ b/test/wrong/good-refed-file.yml
@@ -0,0 +1,2 @@
+payload:
+  $ref: refed-file-broken-schema.yml
\ No newline at end of file
diff --git a/test/wrong/refed-file-broken-schema.yml b/test/wrong/refed-file-broken-schema.yml
new file mode 100644
index 000000000..1341bd105
--- /dev/null
+++ b/test/wrong/refed-file-broken-schema.yml
@@ -0,0 +1,4 @@
+type: string
+properties:
+  name:
+  type: string
\ No newline at end of file